In what may end up being a landmark case against the online gambling industry in the US, Bodog has been ordered to pay $49 million in damages and have lost the use of their trademark domain name Bodog.com.

Bodog is one of the world's largest online gambling companies, with an online casino, sports book and poker room. The company has also recently expanded into music and television with the establishment of a new record label as well as hosting mixed martial arts and boxing matches, branded as BodogFights. Bodog continues to provide gaming services to US residents.

The online gaming news site GamingIntelligenceGroup.com reported today that the loss of Bodog's domain name and the damages they have been ordered to pay are a result of the company's failure to respond to allegations made against them in a suit filed in Nevada by 1st Technology LLC. 1st Technology LLC owns a patent on a process for taking wagers online and claimed that Bodog's downloadable software infringes the company's US patent.

Because Bodog failed to respond, a default judgement was issued against them ordering the company to pay $49 million in damages. In addition, the registrar of Bodog's domain names was ordered to remove all name servers associated with Bodog and Calvin Ayre (Bodog's flamboyant and popular CEO), rendering the domain names useless.

If Bodog can't get their domain names back, they will suffer huge losses in earnings from lost Google search rankings.

Bodog was quick to respond, launching their services on a new domain name today and a statement from Calvin Ayre on the new website states:
"This is the result of a legal dispute over the ownership of the Bodog.com domain name. We are fighting this dispute. We are confident that we will win, but until all is settled, I do not want our battle to interrupt your play…You won't notice very many changes: same website, same brand, same product, and same service. Just a new domain name. We are working to resolve any remaining issues on the temporary site as soon as possible, and fully expect to have our original site back up shortly."

The widespread ramifications for the online gambling industry in the US may be serious, however. 1st Technology LLC lawyers argued that "Bodog continues to act with impunity in the United States" and that "1st Technology continues to suffer massive and irreparable harm because of the Bodog entities' wrongful conduct".

If 1st Technology LLC goes on to win what is sure to be an extended battle with Bodog over this issue, a number of other major online operators still active in the US could find themselves next in the firing line.